It is certainly true that we have entered an era of zero even negative inflation in the developed world. /Meghnad Desai, OMFIF Bulletin, Winter 2021/ Inflation, however, will remain in positive territory for the emerging economies.
Money is created by a click on a computer at global central banks /Fed, ECB, BoJ, BoE/; however, all other central banks should follow a much more cautious path due to positive inflation rates and public debts.
A huge welfare state can be maintained without new taxes in the developed world; however, it must not be built in the emerging economies due to concerns of their competitiveness.
Two completely different worlds are emerging. On the one hand, China and all other developing economies with harder choices, on the other hand, the Western developed world with new lower-hanging fruits.
Fifty years will be enough for us to catch up with the developed world.
Governor Matolcsy, MNB, the Central Bank of Hungary